Ripples XRP makes it back into the news, but for all the wrong reasons.
Ripples XRP has had a turbulent day. The cryptocurrency has been halted on Japanese crypto exchange Coincheck. Coincheck announced the move via Twitter, stating that it was suspending sales of Ripples XRP.
Coincheck explained that the decision was due to the transaction status with Ripple. Fortunately for traders, the announcement was short-lived. The Bitcoin Up exchange resumed trading ten minutes later.
However, traders on rival exchange Prime XBT were not so lucky, and the suspension was not as short-lived. Prime XBT eventually relented, along with several other high-profile exchanges.
It will delist XRP pairs from the market by Wednesday 10 February. The delisting includes both BTC and USDT pairs.
Ripples XRP – Pump and Dump?
The news comes after Ripples XRP had one of its most volatile days in recent times. The token managed to reclaim third place in terms of market cap after a 56% price rally from $0.48 to $0.75.
The euphoria of Ripple’s XRP (Go to buy Ripple guide) making a massive comeback in one day was short-lived. The token fell 48% from $0.75 to $0.39, essentially erasing two days of gains.
The dump also relegated Tether (USDT) to third place in market cap. Traders on Twitter have speculated that the move may have been linked to a large pump and dump group.
However, the ability to pump and dump a top five cryptocurrency is rather worrying. This would mean that the group could theoretically pump a coin of their choice in the future. This is highly unlikely.
Ripple rebuttal unsuccessful
One possible reason for the price spike was the recent news about Ripple’s response to the SEC’s allegations. The company’s rebuttal to the SEC claims that Ripple’s XRP is not a security. The rebuttal also states that FinCEN approved the sale of Ripple’s XRP in 2015 without any comment or warning from the SEC at the time.
The allegations were a threat to Ripple, and the XRP price fell dramatically after the allegation. The price rose 50% after news of a rebuttal from Ripple.
But it seems that the news was not the cause of the price rally. Rather, it may have been a coordinated pump and dump.
A pump and dump is probably not a good picture for Ripple. Price manipulation could only cast more shadows on it in the future.